Cryptocurrency influencer and analyst Ben Armstrong recently issued a warning to meme coin traders, advising them to take profits from their investments as often as possible. Armstrong, who is known for his YouTube channel and social media presence as “BitBoy Crypto,” describes meme coin trading as a game of “hot potato,” with the value of these coins being extremely volatile.

In a tweet posted on May 7, 2023, Armstrong wrote, “All meme coins will eventually go to zero except maybe DOGE. Don’t be caught holding the bag when the music stops. Take profits as often as possible.” He also added a GIF of a cartoon potato being passed around a group of people, with the words “hot potato” emblazoned across the screen.

Meme coins, as their name suggests, are a type of cryptocurrency that are created based on popular memes or internet trends. They often lack any real use case or utility, and their value is driven primarily by hype and speculation. Some popular examples of meme coins include Dogecoin (DOGE), Shiba Inu (SHIB), and ElonGate (ELONGATE).

Armstrong’s warning comes at a time when meme coin trading has exploded in popularity, particularly among retail investors looking to make quick profits. While some have been successful, many have also lost money as the value of these coins has proven to be extremely volatile. In fact, meme coins are known for their wild price swings, with some coins surging by hundreds or even thousands of percent in a matter of days, only to crash just as quickly.

This was evidenced recently when a relatively unknown meme coin called GENSLR rallied by over 200% between May 6 and May 7, 2023, before plummeting by over 50% in just a few hours. While some investors may have made significant profits during the rally, those who held on too long would have seen their gains quickly evaporate.

Armstrong’s advice to take profits from meme coin investments is therefore timely and may help some traders avoid losses. By taking profits regularly, investors can lock in gains and reduce their exposure to potential losses. This strategy is particularly important in the case of meme coins, which are often driven by hype and FOMO (fear of missing out) rather than any real fundamentals.

Of course, this advice is not unique to meme coins and is applicable to all forms of cryptocurrency trading. Taking profits regularly is a sound investment strategy and can help traders avoid the temptation to hold on to their investments for too long, even as the price starts to drop.

Armstrong is not the only one warning of the risks of meme coin trading. Many experts and analysts have cautioned that these coins are highly speculative and that their value is based largely on hype rather than any real underlying value. Some have even likened meme coin trading to gambling, as the outcome is largely unpredictable.

Despite these warnings, meme coin trading continues to be popular, particularly among younger investors who are attracted to the idea of making quick profits. While some have been successful, it is important to remember that the risks are high, and losses can be significant. As with any form of investment, it is important to do your research, set realistic expectations, and diversify your portfolio.

In conclusion, Ben Armstrong’s warning to take profits often is a timely reminder of the risks associated with meme coin trading. While it can be tempting to hold on to your investments in the hopes of making even greater profits, the reality is that the value of these coins is highly volatile and unpredictable.